Tether requires EURt holders to exchange their tokens before November 25, 2025, following the decision to discontinue support for this stablecoin.
On November 27, Tether, the largest issuer of USDt (USDT) stablecoin in the world, announced it would stop supporting the EURt stablecoin pegged to the euro. Users are required to exchange EURt within a year, with a deadline of November 25, 2025. This decision applies across all blockchains, while the issuance of new EURt has been halted since 2022. Tether stated that this move is part of the company's overall strategy to adapt to the changing legal framework regarding stablecoins in the European market.
The cessation of support for EURt, a stablecoin launched in 2016 with a pegged rate of 1:1 to the euro, marks a significant turning point in the tightening regulatory landscape for cryptocurrencies in Europe. With a market capitalization of only 27 million USD, accounting for 0.02% compared to USDt, EURt has a relatively small impact. However, this decision reflects the challenges that stablecoins face as regulators increase oversight. Tether emphasizes that community interest is a key factor in this decision.
Source: CoinnGecko
Tether stated that the main reason for stopping support for EURt is due to legal changes, particularly the European Union's Markets in Crypto-Assets (MiCA) regulation, which is expected to take effect by the end of 2024. The company believes a less risky legal framework is needed to promote innovation and protect users. Tether's CEO, Paolo Ardoino, previously criticized MiCA, claiming that this regulation creates systemic risks for stablecoins.
Despite discontinuing the issuance of EURt, Tether remains committed to supporting MiCA-compliant stablecoin projects, including Quantoz Payments’ EURq and USDq. In mid-November, Tether announced it would support Quantoz's stablecoins, collaborating with the Kraken exchange and Fabric Ventures. These stablecoins will utilize Tether's Hadron technology, simplifying the creation and management of stablecoins while ensuring blockchain interoperability, regulatory compliance, and anti-money laundering measures.
Tether asserts that investing in projects like Quantoz is not only about technology development but also about redefining finance, aiming for flexible solutions focused on users and building a stable, inclusive financial ecosystem.